CARFAX estimates that extensive flooding from Texas to Vermont has left as many as 89,000 vehicles with water damage in 2024. That’s on top of the estimated 454,000 water-damaged cars that CARFAX data shows were already on the road in 2023 – before any summer hurricanes and storms hit. So what are the biggest issues facing auto recyclers as they try to manage and handle these storm-damaged vehicles?
Patti Goncalves, the owner of All Auto Hustlers in Tampa, Florida, said in the Tri-County Area of Hillsborough, Pasco and Pinellas, the flood damaged vehicles from Hurricanes Helene and Milton could potentially be in the tens of thousands.
“The flooding wasn’t isolated to coastal communities but to several communities located further inland. Flash flooding due to overflowing rivers, lakes and canals was widespread,” Goncalves said.
Mike Dimmer, co-owner of Junk Car Reaper, added that the number of vehicles damaged or destroyed by the flood waters from Hurricane Helene and Hurricane Milton could conservatively be estimated to be 50,000+.
“These hurricanes wreaked havoc along the East Coast, especially in Florida and the Carolina regions. The amount of requests from sellers that have checked off that their vehicle was damaged by a flood this fall has increased exponentially,” Dimmer said. “My team ran some numbers and it’s over 6500 percent.”
David Klanecky, chief executive officer of Cirba Solutions, a company that specializes in damaged batteries, and specifically those from electric vehicles (EVs), said a recent report from CARFAX estimates that as many as 89,000 vehicles were damaged or destroyed by tropical storms and hurricanes between June and August of this year. Recent storms and accompanying floods caused significant destruction, with Hurricane Helene leaving behind an estimated 138,000 damaged vehicles across six states and Hurricane Milton adding as many as 120,000 in Florida alone.
“When floodwaters reach an electric vehicle battery, there’s a greater risk of damage,” Klanecky said. “We saw this happen recently with Hurricanes Helene and Milton, which devastated communities.”
When lithium-ion batteries are exposed to water, they generate heat, increasing the risk of fire. Warning signs of a damaged EV battery may include difficultly starting, not keeping a charge, or something as visual as smoke.
As Dimmer explained, water exposure, especially saltwater, can short-circuit batteries, leading to overheating or thermal runaway, where the battery can ignite or explode.
“This risk isn’t just immediate – waterlogged batteries can catch fire days or weeks later due to delayed chemical reactions,” Dimmer said. “Water causes internal corrosion, degrading battery efficiency and shortening its lifespan. Most affected batteries require complete replacement. In addition, flooded batteries contain toxic chemicals, making them hazardous to handle and discard. Corrosion and water residue complicate recycling and reduce the efficiency of material recovery.
Another aspect to consider is how EV designs and battery packs have evolved. OEMs and cell manufacturers are working towards making the battery pack and housing waterproof, but sometimes water can be penetrative, especially saltwater. It will be interesting to see how this continues to evolve over time.
According to Simar Bedi, founder of Sol Recycling, during the height of the recent hurricanes, as well as days afterward, many recycling centers were closed, which means an influx of damaged autos were expected. “A lot of trucks were destroyed because the electronics and hydraulics in these trucks prevent them from operating in storm conditions,” Bedi said. “The value of a brand new truck like this is $300,000 so this is a daunting insurance claim.”
As Bedi further pointed out, 50 cars per day are typically crushed or destroyed at an auto recycling business but when a storm happens of this magnitude, that number can rise to 100 cars crushed per day.
“Recyclers are trying to recycle more but auto recyclers are all trying to come up with a system to handle this new material,” Bedi said.
David Sauve of ReElement Technologies further added that water is the mortal enemy of any electrical system. Floodwater is a special concern for any vehicle’s electronics and electrical systems even if it was submerged for only a short time.
“Many cars show up on used car lots and appear cleaned up, but they’re literally cooked from the inside out,” Sauve said.
The value of damaged vehicles sent to the junkyard, or worse, to the used car lot, goes well beyond common replacement parts such as hubcaps, doors, or hoods. The real treasure lies in the metals, especially the critical minerals and rare earth elements used in components that power the vehicle.
“Vehicle recyclers often ask, ‘How can we dispose of these valuable components and derive cash value?’” Sauve said.
ReElement Technologies is working with U.S. auto manufacturers and expanding its programs with other companies to offer a low cost and environmentally friendly process to fully recycle and refine the high value rare-earth elements within EV motors back to magnet-grade rare-earth oxides (REO). ReElement’s purification and separation process is also producing lithium-based battery cathode active materials (CAM) from other recycled components.
Recycling the valuable components is a solution that serves companies that disassemble the vehicles, companies that collect the components, and those that process them into highly purified metals that can be put back into the manufacturing supply chain.
“For example, lithium is one of the critical minerals used in hybrid and EV batteries. Lithium prices have fluctuated dramatically over the past couple of years, but data has shown the price of lithium carbonate to be around $6,000 to $10,000 per metric ton,” Sauve said. “A standard EV contains around 0.005 to 0.015 metric tons of lithium carbonate, according to estimates made by the Department of Energy.”
Challenges Facing Auto Recyclers
“One of the biggest challenges an auto recycler faces with flood vehicles is to properly train their employees to correctly identify a flood damaged car,” Goncalves said. “The outward appearance of a vehicle may seem undamaged, but flood vehicles begin to deteriorate from the inside out. The used parts typically salvaged such as motors, transmissions, alternators, starters and many more small parts, may no longer be able to be sold depending on the severity of the damage.”
Education on safety, compliance, transportation and removal of a battery from the vehicle are some other big challenges when it comes to damaged automobile batteries. Not only is it important to be able to recognize the signs of a damaged battery, but knowing how to properly dispose of the damaged materials can also be a hurdle.
As Klanecky explained, while there are some automotive recyclers that are very well prepared, many are still learning about electric vehicles and the batteries in them. It’s essential for teams who are recycling automotive parts to partner with a specialized battery recycler who has the expertise and resources to navigate the complexities and safety considerations of EV batteries.
“This way, teams can be more prepared to handle batteries safely and in a sustainable way, ultimately contributing to a more responsible circular economy,” Klanecky said.
Preparing For the Future
In Florida, it is not illegal to sell a flood damaged car as long as the seller discloses the damage to the buyer.
“Some steps the auto recycler can take to properly handle flood damaged cars are to train employees to be able to correctly identify these types of vehicles,” Goncalves said. “Marking all parts taken from flood cars for resale and following industry standards set by EPA Best Management Practices when disposing hazardous materials will greatly minimize any damage done by these vehicles as a result of these types of storms.”
Klanecky said that prioritizing staff training on the risks associated with damaged EV batteries on the safe handling during or after a hurricane, and establishing clear protocols for assessing batteries for potential damage and defects, along with defining the appropriate next steps is essential.
“Additionally, investing in the necessary equipment for the safe handling and storage of damaged batteries until they can be transported to a battery recycler is key to have in place before a natural disaster impacts your region so teams are ready,” Klanecky said. “Ultimately, collaborating with a trusted battery recycler is important to safely manage and recycle damaged EV batteries.”
Published December 2024
